Sugarcane producers in Sarlahi, Nepal, are upset about the treatment given by Indu Shankar Sugar Mills, the factory changed it’s payment system, at moment all payments to farmers are by installment.
Many farmers change their chops to sugarcane thinking about the opportunities to became an mill’s supplier, but the reality is too different.
Besides this installment, the factory should pay 76 cent to 0,5 tons, at moment the current price is 36 cents, the low price and these partial payments are disrupt the sugarcane sector on region. Some farmers will interrupt their crop, work with sugarcane on Sarlahi hasn’t been a good deal.
Bijay Kant Jha, general manager of Indu Shankar Mill, spooke with local media and said that the factory hasn’t the money to cover all payments, but she ensure that the minimum price will be respected. “”We needed Rs 270 million to clear outstanding dues of farmers. But we have received only Rs 125 million from the state-owned Salt Trading Corporation”, said.